Real estate valuation is one of the most important factors affecting the Saudi real estate sector’s balance of supply and demand. The indiscriminate pricing of real estate can cause the entire sector to stagnate, halt purchases, and cause a lack of demand.
Below we will discuss everything you need to know about real estate valuation.
What is real estate valuation?
It is the process of valuing real estate to determine the fair market value of buying or selling a property and for other purposes. This task is carried out by an accredited real estate valuer or a real estate valuation company based on several approved standards and methodologies.
What factors affect real estate valuation?
In the real estate valuation process, there are several influential factors, here are the main factors that a real estate valuer takes into consideration during the valuation process:
- Location: Location is one of the most important factors that affect the value of a property. Properties located in vital and commercially sought-after areas usually have a higher value than those in remote areas.
- property condition: The condition of the property and the level of maintenance is also taken into consideration. Properties that are in excellent condition and require less maintenance are often worth more.
- Area and features: The value of a property depends largely on its size, number of rooms, and specifications, such as the presence of facilities such as a swimming pool and garden.
- Investment income: The expected financial return from the real estate is also assessed, and it depends on the economic and market potential of the property in the area.
- Economic and market factors: The value of a real estate property is also affected by general economic and market factors, such as inflation, demand and supply in the property market.
- Local laws: Local laws and government regulations can affect the valuation of real estate, such as taxes and property-related regulations.
It is important to choose a certified property valuation company to obtain an accurate and objective value, and Aain Real Estate Valuation Company provides this service with extensive experience through its team of professional certified valuers.
When do you need a real estate valuation?
Some cases and situations require a clear report from an accredited real estate valuation company on the value of the real estate, as this document is a key requirement to proceed with procedures:
1. Buying and selling:
When you are about to sell a property or buy a property, a real estate appraisal helps in determining the fair value of the real estate.
2. Mortgage request:
When you are seeking a mortgage, you need to get a real estate valuation. This valuation determines the value of the real estate as collateral for the loan and helps financial institutions in making mortgage decisions.
3. Property Insurance:
When you plan to insure your real property, a real estate valuation is essential. This valuation makes it easier for insurance companies to determine the value of the real estate and determine the right amount to insure it.
4. Inheritance:
Real estate valuation plays an important role When settling estates or distributing inheritances. the valuation helps in determining the value of the real estate accurately.
5. Updating financial records:
When you need to update financial records or certify the sale or purchase of real estate, a property valuation is required to confirm the current value of your organization’s real estate assets and ensure the validity of the transactions.
You should look for accredited real estate valuation companies that help you know the fair value objectively and accurately, and that have experience and precedent in valuation for individuals and organizations.
We advise you to choose Aain Real Estate Valuation Company as it is a partner of the largest authorities in the Kingdom and provides real estate valuation reports on an ongoing basis in the Kingdom.
In short, there is a constant need for a property valuation whether you intend to sell or buy a real estate, inherit a real estate, or even obtain a mortgage to buy a new real estate.